Today’s topic: Israel’s currency. Your trip to Israel is just around the corner, and you’re already incredibly excited about all the new cultural impressions, the smells and colors, Tel Aviv, Jerusalem, the trip to the Negev Desert, and bathing in the Dead Sea? Israel will definitely be a highlight on your travel list, as Bolle and Marco are also completely in love with the country and often talk about their trip.

You will find a wealth of information on the blog for your travel planning. So that you don’t have to worry about your finances, I have summarized all the most important information about the currency in Israel and payments in this post. This way, you will be optimally prepared for your trip through this wonderful country.

What else you should know:

  • What else you should know:
  • Currency in Israel
  • Withdrawing money in Israel
  • Fees for withdrawing money
  • Exchanging money locally
  • Paying with a credit or debit card
  • The best credit card for Israel
  • Prices in Israel
  • More tips for you

Currency in Israel

The currency in Israel is the New Israeli Shekel (NIS or ILS), commonly known as the shekel. One shekel consists of 100 agurot. During your trip, you will be able to use both banknotes and coins for payment. Coins come in the following denominations: 1, 5, 10 ILS, or 10 and 50 agurot. Banknotes in Israel come in four denominations: 20, 50, 100, and 200 ILS. At the current exchange rate (as of November 2019), you get approximately 3.83 shekels for 1 €. I would definitely recommend downloading a currency converter before your trip so you can double-check the calculations at markets or when booking hotels.

Israeli currency: Shekel banknote

Withdrawing money in Israel

Once you arrive in Israel, the first opportunity to withdraw cash is right at the airport. Here you’ll find the first ATMs (that’s what cash machines are called), and you can safely withdraw shekels from the ATM using your credit card. But you’ll also find ATMs everywhere in all cities, especially in the larger ones like Tel Aviv, Jerusalem, and Eilat. Smaller towns also offer the option of withdrawing cash these days, although the selection isn’t quite as extensive. The most common credit cards for your trip to Israel are VISA, MasterCard, Diners Club, and American Express. You can also withdraw shekels at ATMs using an EC card.

Withdrawal Fees

Even though withdrawing cash while traveling has become very easy these days, it’s important to note that your bank in your home country will charge you foreign withdrawal fees for each withdrawal. In most cases, this is €5-10 per withdrawal with an EC card and 1 to 4% of your withdrawal amount with a credit card. It may also happen that the ATM operator in the country you’re traveling to charges a fee of a few euros per withdrawal.

Especially on longer vacations, these unnecessary costs can quickly add up and put a strain on your vacation budget. So, if you want to withdraw money from an ATM, always try to choose a larger amount. This way, you avoid having to visit an ATM every other day, where you also have to pay unnecessary fees. I therefore recommend a travel credit card, which offers good terms abroad.

The credit card from Santander Bank* is still unbeatable. It’s designed specifically for stays abroad and is currently the only credit card on the market that doesn’t charge a withdrawal fee. From my own experience, I also recommend always carrying a second credit card as a backup; you never know if an ATM might not accept your card, if it gets stolen, or if you lose it.

Exchanging money locally

If you want to exchange your euros for shekels, I recommend waiting until you arrive in Israel. In Germany, you’ll get a significantly worse exchange rate at German banks. Upon arrival at the airport in Tel Aviv, I would only exchange money at a currency exchange bureau in an emergency. While the rates are better there, they’re usually 10% worse than those in the city.

You’ll get the best exchange rate from euros to shekels at official currency exchange bureaus in the city. These often look shady from the outside, but they’re usually very reputable. Nevertheless, you should still compare the different bureaus, as the difference between them is often up to 15%. I would strongly advise against exchanging money on the street, which is offered in the Palestinian part of Jerusalem. Counterfeit money and poor exchange rates are not uncommon here.

Sometimes, however, exchanging euros or US dollars for shekels is not even necessary, as some hotels and often larger shops accept euros or US dollars.

Exchange offices in Tel Aviv:

  • Bitcoin Exchange (King George St 32, Tel Aviv-Yafo, Israel)
  • Money Exchange (65 Bograshov St 61, Tel Aviv-Yafo, Israel)
  • Money Exchange (Sderot Washington 23, Tel Aviv-Yafo, Israel)

Payment with credit or debit card

Cashless payment is also widespread in Israel. You can easily pay with a credit card at the airport, in hotels, at car rental companies, in supermarkets, and in larger shops. It’s more difficult, however, with debit cards, as these are less widely accepted. The most common debit card is still Maestro. With VISA, MasterCard, American Express, and Diners Club credit cards, you can easily pay in tourist areas.

It’s important to note, however, that cash is a must in remote regions. You won’t get very far without banknotes here. You should also factor in the foreign transaction fee, which your bank in Germany will charge you as a percentage. This means that with every credit card payment, you will be charged a foreign transaction fee of 1 to 4% of your spending.

At this point, the Santander Bank* credit card is worthwhile again, as it allows you to request a refund of your foreign transaction fee, which saves you a considerable amount of money, especially on longer trips.

The best credit card for Israel

Are you interested in traveling through Israel and are still looking for a suitable travel credit card? There are countless cards on the market, but the Hanseatic Bank* credit card is currently particularly good. With this card, you can withdraw money worldwide free of charge, and the card itself is also free of charge. You can find out more about this card in our extensive travel credit card comparison.

Waehrung-suedafrika-kreditkarte-geldabheben (1)

It’s also always better to have a second card with you, whether it’s a credit card or, in a pinch, an EC card. It can always happen that your card gets stolen, you lose it, or the ATM doesn’t accept it. In this case, you should have a plan B. We highly recommend the DKB Bank credit card*. Marco and Bolle have been happy with this for many years.

Prices in Israel

To give you a brief overview of how much you should expect to spend per day in Israel, I’ve selected the most common prices for everyday life.

  • Hostel accommodation: €20 to €30
  • Good Airbnb room: from €30
  • 3-star hotel from €75
  • Falafel from a snack bar: €5
  • Restaurant visit: €10 to €20
  • Bottle of water at the supermarket (1.5 L): €0.50
  • Bottle of beer at the supermarket: €1.50
  • Bottle of beer at a restaurant: €5
  • Bus ticket within a city: €1.90
  • Gas: €1.60 /L
  • Taxi ride within Tel Aviv: €8 to €13
  • Rental car: from €20 per day

More tips for you

As already mentioned, you shouldn’t carry large amounts of cash with you. While we don’t want to paint the devil on the wall, thefts and robberies can still happen. In such cases, it would be fatal if you had thousands of euros in your wallet. When withdrawing money from an ATM, make sure you enter your PIN discreetly so no one can see you.

Don’t let strangers help you, and don’t let others distract you (trick!!!!). Please do not withdraw money at night and do not use ATMs in remote locations. If an ATM swallows your card or you lose it, you should notify your bank and have it blocked. Read more here: Security tips for credit cards.